New iMac not displaying Second monitor correctly... ATI graphic to blame?

I bought a new iMac a week ago, only to find out yesterday that new ones were released. My local Apple Store had no problems allowing me to swap my now outdated iMac for the new one that came out yesterday, and I am very grateful for that.
However, ATI's graphics are not getting along with my dual monitor setup. My display looks excellent on the iMac itself, but on the external 23" HD display from HP, it is all distorted and only shows 3/4 of the screen.
HP does not make drivers for OS X on their displays, since they are plug and play. Therefore, the issue is in ATI.
Anyone else having trouble with this?

Danny,
It's probably just the monitor preferences aren't set up correctly. Please follow these instructions:
1. System Preferences - Displays
2. Using the iMac's display preference click the Arrangement tab and you will see the orientation of the monitors. You will need to choose the left pane and move it around to get the orientation you want. When you choose it both box in the preference and the window on the monitor will get a red band around the outside to help you orient where you are. It takes a little trying but I'm sure you'll figure it out.
You didn't say what you have done to troubleshoot the issue so I'm assuming you haven't looked at the monitor preferences yet.
Regards,
Roger

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